FOREX — an interbank over-the-counter market in which procedures for the purchase and sale of one non-cash foreign currency for another are carried out around the clock. From other financial markets, FOREX is distinguished by the largest trading volume (over 2.5 trillion US dollars per day), the lowest cost of transactions and the rapid movement of funds. This is the only global financial market that operates 24 hours a day. At the same time, there is no specific trading platform as such. The vast majority of Forex participants are located in different countries of the world and trade through the terminals of their computers, tablets and smartphones.
Minimum deposit on Forex
Many dealing centers offer a very small minimum deposit. Usually from 10 dollars. Some allow even less, down to 1 dollar. But don’t rejoice. This does not provide any benefits. Quite the contrary. The reasons are clear: With such a deposit and a minimum step of 0.1, you get 100 points. And only on one pair. A slight fluctuation in rates and there is nothing left of your deposit. There is no room for maneuver. It’s the same as sword fighting in a rabbit hole. You will most likely lose your deposit quickly. All that will remain is bewildered disappointment. What your minimum deposit on Forex will be is up to you. But optimally it’s better to start with a few hundred dollars or at least, as a last resort, with one hundred. Dealing centers accommodate traders halfway by minimizing the input of the amount, but for you this makes minimal sense.
The only benefit seen here is training for a beginner. To get a feel for the real market. The main condition is that the beginner must immediately mentally say goodbye to this minimum amount. Psychological training of a novice trader takes place.
Examples of trading on the Forex market with leverage
The Forex currency market was formed in 1971. Forex trading volume reaches 1-3 trillion dollars per day. Unlike stock and commodity exchanges, Forex is traded seven days a week, every second, 24 hours a day. You can work on Forex online through a terminal installed on your computer or by phone. The essence is clear using an example: Let’s say you have $1000 on deposit. You take a leverage of, for example, 500.
(i.e. you can make trades worth 500 times your deposit).
If you decide to compete on Forex in the dollar-euro pair at the moment the rate was 1: 1.40 and based on the analysis you are confident in the growth of, say, the euro, buy for $500,000 (1000 x leverage 500)
357,140 euros. You are waiting for the moment of the greatest immediate growth of the euro. There may be several convenient moments during the day. Let’s say that at some point the euro began to cost 1.42, i.e. the rate increased by only 2 cents. You sell euros and calculate your profit:
357,140 x $1.42 = 507,140. In total, your income from Forex on this transaction is more than 7 thousand dollars. With the ability to analyze and make forecasts as close to reality as possible, you can earn colossal sums.
But the forecast is based on knowledge, experience, the use of special methods and a little luck. A lot of preliminary work is required.
That is why you cannot work on Forex simply because you have nothing to do.
You need to invest yourself in this business. Work seriously.